L09 - Interactive 3: Practice 2

[This interactive has 1 page that gives practice for finding compound interest.]

Page 1 of 1

Rahul wants to start a savings account. He has $6,600 he can deposit now and plans to add $175 each month. The account will earn 1.7% interest and is compounded monthly. Rahul wants to know how much money he will have saved in 6 years.

The syntax for the FV command in Excel is:

=FV(rate, nper, PMT, [PV]).

Use the FV command in Excel to find Rahul’s account balance in 6 years. [Record your answer.]

1. Account balance in 6 years?

[Hint says, “Are you using this Excel command? =FV(0.017/12, 6*12, 175, 6600).”]

Page 1 of 1 Answer

$20,563.35

[End of activity.]